Dais Analytic Announces Shipment of N-Still Water Desalination System to Singapore-Based Firm

TAMPA, FL -- (MARKET WIRE) -- January 22, 2007 -- Dais Analytic Corporation (PINKSHEETS: DLYT), a
nanotechnology polymer materials company, announced today it is shipping a
pilot version of its N-Still water desalination system to a
Singapore-based engineering and construction firm.

Following Dais's successful six-month system test which produced clean
potable water at its Tampa Bay, Florida, facility, the Singapore firm
ordered a pilot unit to validate N-Still's performance in field conditions.
This validation project is expected to be completed in 1Q 2007. It will be
followed, based on performance, by an expanded demonstration and
commercialization program for the system across South East Asia.

According to the American Water Works Association, nearly $95 billion will
be expended on desalination processes worldwide from 2005-2015, with nearly
$30 billion of that for new installations of membrane-based systems.

Uniquely cost-effective, energy efficient and environmentally friendly,
N-Still has the potential to be a significant player in the burgeoning,
multi-billion-dollar, world-wide water desalination market as either a
scale-able stand-alone desalination facility or as a way of making existing
reverse osmosis (RO) plants more productive.

Tim Tangredi, CEO of Dais Analytic Corporation, said, "We are excited about
the N-Still system's successful tests, and we are confident it will perform
equally well under field conditions and the program will stay on track for
expansion in South East Asia."

Tangredi added, "Equally important, this event further validates the power
of the Company's nano-structured materials. As this initial N-Still project
is being implemented, Dais continues to seek business partners in other
parts of the world to complete testing and to begin full
commercialization."

N-Still reduces costs and environmental risks

Dais's N-Still system offers reductions of capital costs, lower operational
and maintenance costs, and less elapsed time to construct a desalination
facility.

Popular reverse osmosis (RO) systems employ more expensive membranes
through which seawater is forced under high pressure to filter out the salt
and create clean water. RO systems are capital and energy intensive,
generally presenting operational challenges while creating environmental
disposal issues.

N-Still, using low quality waste heat or exploiting existing thermal energy
found in hydrological or geothermal sources, uses concentration differences
generated at low temperatures and low pressures to molecularly separate
clean water from salt water. The Dais nano-structured material, with salt
water flowing on one side, allows clean water to diffuse to the other side
while rejecting other dissolved solids along with bacteria and viruses.

Bob Brown, Vice President of Dais Analytic, stated, "The N-Still process
demonstrates yet another application of our proven, commercially available
membrane materials. A similar version is used in our ConsERV Energy
Recovery Ventilator product line. ConsERV is on target to reach $11 million
in revenues by 2009 -- helped by our nationwide agreements with Comfort
Systems as well as key repeat customers including Wal-Mart. We expect to
see similar market validation for our N-Still system and we continue to
look for quality partners worldwide to implement this exciting new
technology."

About Dais Analytic Corporation

Dais Analytic Corporation (PINKSHEETS: DLYT) is a newly public
nanotechnology materials company designing and commercializing new
materials and processes that exceed the limits of conventional materials.
Dais is one of the few pure plays in the nanotechnology space now earning
revenue on its inventions.

Currently, the Company generates revenues from its first commercial product
-- ConsERV (www.conserv.com), which is a Heating, Ventilation, and Air
Conditioning (HVAC) product saving on average 33% in HVAC capital costs,
30% or more on operational energy costs and 20% peak energy reduction all
while improving indoor air quality. For more information about Dais
Analytic Corporation, please visit www.daisanalytic.com

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1, Ltd. ("CFSG1") provides Dais Analytic Corporation. ("the Company") with
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